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Which of the following statements is false? Company A provides interest free loans to its shareholders. This is an example of a constructive dividend. None
Which of the following statements is false? Company A provides interest free loans to its shareholders. This is an example of a constructive dividend. None of these answers are correct. In order to qualify as a Subchapter S corporation, the corporation must be a domestic corporation. Company A would recognize a gain when it distributes appreciated property to shareholders. The income of a Subchapter S corporation is taxed to the corporation and to the owners of the corporation.
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